After the termination or expiration of the agreement, for how long is a B Bops developer restricted from engaging in a similar business?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
e parties hereto.
- B. Developer hereby agrees that for a period of two (2) years immediately following the termination or expiration of this Agreement, Developer, its directors, officers, shareholders, partners, members, principals or agents will not, directly or indirectly, enter into or engage in any business the same as or substantially similar to a B-Bop's Restaurant operating at any location within the Trade Area or within a twenty (20) mile radius of any other B-Bop's Restaurant then in operation or under construction, whether owned and operated by Company, any affiliate of Company or by a franchisee under license granted by Company, except that Developer shall be entitled to continue to own and operate any Unit pursuant to a Unit Franchise Agreement entered into between the parties hereto.
- C. For purposes of this Section 12, a business shall be deemed the "same as or substantially similar to a B-Bop's Restaurant" if the business is engaged in preparing and serving to the public any food items included from time to time as a standard menu item for a B-Bop's Restaurant.
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- ASSIGNMENT BY DEVELOPER.
Source: Item 23 — RECEIPTS (FDD pages 53–145)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, a developer is subject to a covenant not to compete for two years after the termination or expiration of the Development Agreement. During this two-year period, the developer, including its directors, officers, shareholders, partners, members, principals, or agents, is prohibited from engaging in any business that is the same as or substantially similar to a B Bops Restaurant.
This restriction applies within the Trade Area defined in the agreement or within a twenty-mile radius of any other B Bops Restaurant that is then in operation or under construction. This includes restaurants owned and operated by B Bops, its affiliates, or other franchisees. However, the developer is permitted to continue owning and operating any B Bops Unit under a Unit Franchise Agreement that was entered into before the termination or expiration of the Development Agreement.
The FDD specifies that a business is considered "the same as or substantially similar to a B-Bop's Restaurant" if it involves preparing and serving to the public any food items that are included as a standard menu item for a B Bops Restaurant. This definition is important because it clarifies the scope of the non-compete agreement, focusing on the specific types of food and services that would be considered a competitive business. This clause aims to protect B Bops's market share and business model by preventing former developers from directly competing with the franchise within a defined geographic area for a limited time.